Abstract:Prices for oil and other energy commodities are set in futures and derivatives
markets, where producers, commercial users, and financial speculators buy and sell
contracts whose value is linked to the price of the underlying commodity. Trading
occurs on regulated futures exchanges and in a largely unregulated over-the-counter
(OTC) market; both forms of trading are global in scope. This report presents basic
information about these markets, the instruments traded, the regulatory framework,
speculation, and current legislative proposals. The report will be updated as warranted. [read report]